Toulouse, 31st March 2010.The IGE+XAO Group announces:
First half results under control in a tight economic situation
Against the background of an economic crisis marked by business falling considerably in the electrical equipment and Computer Aided Design (CAD) software markets, IGE+XAO achieved a turnover of 10,369,899 euros in the 2009/2010 first half, representing a drop of 5.1% at constant exchange rates (or -5.4% at actual exchange rates) compared to the same period of the previous year.
In terms of its business activity, IGE+XAO has continued to pursue its mapped out route, which aims to optimize its costs structure whilst retaining an unchanged capacity for innovation and market capture, in order to become a leading player once the recovery starts. In this period the Group, therefore, continued to launch its SaaS (Software As A Service) and Construction offers for SMEs/SMIs. Alongside this activity, IGE+XAO continued to invest in the development of its Electrical PLM (project life cycle management) offer targeted at the Aeronautics market and subsequently at the Automotive market.
In terms of profitability, the Group have posted an operating income of 1,995,158 euros which was 8.1% up on 2008/2009 first half, representing an operating margin* of 19.4%. This growth was achieved by a combination of good operating cost control – reduction of 7.8% – together with the quality of the “Business Model”, which IGE+XAO is improving year on year. Net income, primarily impacted by lower interest rates, was 1,444,282 euros, representing a net margin** of 14.2%.
On a financial side, IGE+XAO has a solid basis, having, at 31st January 2010, 17.7 million euros of equity capital, virtually no banking debt, and available cash of over 13.5 million euros.
In this current financial year, supported by its strong base, the IGE+XAO Group intends to continue its mapped out route, whilst remaining cautious with a view to preserving our high profitability level.
* operating income from sales turnover
** net income from sales turnover